Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions has he had with the Welsh Government on reviewing the Welsh Fiscal Framework.
Answered by Emma Reynolds - Chief Secretary to the Treasury
I regularly engage with my Welsh Government counterparts on the Welsh Fiscal Framework and wider devolved government funding arrangements, including through the Finance: Interministerial Standing Committee.
At Autumn Budget 2025, the UK Government announced changes to the Welsh Government’s budget management arrangements, including a 10 per cent increase in the annual resource and capital Wales Reserve drawdown limits for 2026-27 and annual uprating of these limits in line with inflation from 2027-28. The UK Government also provided a temporary waiver of the annual drawdown limits for 2026-27.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Welsh Government on the provision of further funding to protect public services from the effects of higher inflation.
Answered by Emma Reynolds - Chief Secretary to the Treasury
Spending Review 2025 provided the Welsh Government with their largest settlement in real terms since devolution in 1998. The Welsh Government continues to receive at least 20% more per person than equivalent UK Government spending in the rest of the UK.
I regularly engage with my Welsh Government counterparts on the operation of devolved funding arrangements.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has he made of the impact of current levels of inflation on the Welsh Government budget.
Answered by Emma Reynolds - Chief Secretary to the Treasury
Spending Review 2025 provided the Welsh Government with their largest settlement in real terms since devolution in 1998. The Welsh Government continues to receive at least 20% more per person than equivalent UK Government spending in the rest of the UK.
I regularly engage with my Welsh Government counterparts on the operation of devolved funding arrangements.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration has he given to introducing an Essential User Rebate for HGV, coach and van operators.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government recognises pressures from fuel price increases linked to the Middle East conflict. As announced in May, as part of a £600 million package, there will be no rise in fuel duty this year and the temporary 5p fuel duty cut has been extended until 31 December 2026. Hauliers will benefit from the extension of the 5p fuel duty cut, with diesel 11p per litre cheaper throughout 2026 than it would have been compared to plans inherited from the previous parliament. This action is in addition to targeted support through a holiday from HGV VED (road tax) for 12 months from 1 July 2026 for the majority of HGVs.
The Chancellor makes decisions on tax policy at discal events, and does not routinely comment on proposals.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has his department made of the potential merits of extending the Rural Fuel Duty to Wales.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Rural Fuel Duty Relief Scheme has provided a 5p reduction to motorists buying fuel in certain areas across the UK since its introduction in 2012. The areas included in the scheme demonstrate certain characteristics such as pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station; and relatively low sales meaning that retailers cannot benefit from bulk discounts.
The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 9 September 2026 to Question 26641, whether the approval of his Department is required by the Department for Health and Social Care to award financial redress in response to recommendations by the Patient Safety Commissioner.
Answered by Emma Reynolds - Chief Secretary to the Treasury
HM Treasury is responsible for setting overall departmental spending settlements and considering proposals for expenditure in line with the framework set out in Managing Public Money. As such, HM Treasury discusses a wide range of policies and their associated funding implications on matters within DHSC’s remit, but does not typically comment on ongoing policy development and specific approvals processes.
Further information on the role of HM Treasury consent in approving public spending is set out in Chapter 2 of Managing Public Money:
https://www.gov.uk/government/publications/managing-public-money
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 9 September 2026 to Question 26306 on Sodium Valproate: Compensation, whether HM Treasury has been asked by the Department of Health and Social Care to approve funding for financial redress for those harmed by sodium valproate during pregnancy.
Answered by Emma Reynolds - Chief Secretary to the Treasury
HM Treasury is responsible for setting overall departmental spending settlements and considering proposals for expenditure in line with the framework set out in Managing Public Money. As such, HM Treasury discusses a wide range of policies and their associated funding implications on matters within DHSC’s remit, but does not typically comment on ongoing policy development and specific approvals processes.
Further information on the role of HM Treasury consent in approving public spending is set out in Chapter 2 of Managing Public Money:
https://www.gov.uk/government/publications/managing-public-money
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions has HM Treasury had with the Department of Health and Social Care since February 2024 regarding the funding of financial redress for those harmed by sodium valproate during pregnancy.
Answered by Emma Reynolds - Chief Secretary to the Treasury
HM Treasury is responsible for setting overall departmental spending settlements and considering proposals for expenditure in line with the framework set out in Managing Public Money. As such, HM Treasury discusses a wide range of policies and their associated funding implications on matters within DHSC’s remit, but does not typically comment on ongoing policy development and specific approvals processes.
Further information on the role of HM Treasury consent in approving public spending is set out in Chapter 2 of Managing Public Money:
https://www.gov.uk/government/publications/managing-public-money
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of reducing VAT for the hospitality sector in Wales to 10%.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
VAT is the UK’s third largest tax, forecast to raise £189 billion in 2026/27. The UK’s VAT system applies UK-wide.
Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate are limited and must be balanced against their impact on the public finances.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the total cost to the public sector in Wales to date of the increase in Employers National Insurance Contributions from April 2025.
Answered by Emma Reynolds - Chief Secretary to the Treasury
The UK Government agreed to provide funding to support the public sector with the additional costs associated with changes to employer National Insurance Contributions policy.
The Welsh Government received funding through the Barnett formula for additional support provided to UK Government departments in 2025-26 as a result of this policy change.
It is for the Welsh Government to estimate its own pressures and determine how to allocate its funding across devolved public services.